Vodafone, Idea Cellular confirm preliminary all-share merger discussion

Vodafone Group on Monday said that is in its discussions with the Aditya Birla Group about an all share merger of Vodafone India and Idea Cellular, confirming the recent media speculation regarding a potential combination of its Indian business with the third largest telco by users, Idea Cellular.

tower-india

“Vodafone confirms that it is in discussions with the Aditya Birla Group about an all share merger of Vodafone India (excluding Vodafone’s 42% stake in Indus Towers) and Idea,” a statement issued on behalf of Rosemary Martin, Vodafone Group General Counsel and Company Secretary, said on Monday.

The statement added that any merger “would be effected through the issue of new shares in Idea to Vodafone and would result in Vodafone deconsolidating Vodafone India. It further added that there is no certainty that any transaction will be agreed, nor as to the terms or timing of any transaction.

Idea Cellular, which is a listed telecom operator, on Monday, informed stock exchanges that it is indeed involved in preliminary discussions with Vodafone Group for a potential merger. The telco was replying to a clarification sought by the stock exchanges on media speculation.

The Aditya Birla Group Company said that “it constantly evaluates various opportunities for enhancing the stakeholders’ value. As a part of the exercise, the company has been in preliminary discussions with Vodafone.”

In view of the fact that the discussion is at the preliminary stage, the company is not in a position to share any further details,” the country’s third largest telecom operator said in a filing.

Idea Cellular further said that it is important to mention that the fundamental premise of preliminary discussion is based on equal rights between Aditya Birla Group and Vodafone in the combined entity.

It however added that “there is no certainty that the discussion with them will result in any agreement.”

Read more on:

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

guest
31 Comments
newest
oldest most voted
Inline Feedbacks
View all comments

[…] Vodafone India and Idea Cellular are planning to merge their operations to combine spectrum assets, strengthen balance sheets and reduce cost and CAPEX to compete effectively. Reliance Communications is also in the process of merging its wireless operations with Aircel. RCom is separately acquiring Sistema Shyam Teleservices. […]

Unknown

The name will be idea cellular as it has Listing on Bombay stock exchange(BSE) and here Vodafone will be backdoor operator.

Recent Posts

Broadband Plans With 300 Mbps Speeds from Bharti Airtel, ACT Fibernet, Tata Sky and Hathway

High-speed internet is required to be able to meet the need for heavy downloading and uploading. If you are in...

BSNL Unveils 3 New 50 Mbps Broadband Plans Under Rs 700

Bharat Sanchar Nigam Limited (BSNL) has unveiled three new Bharat Fiber plans with 50 Mbps speeds in its Punjab circle...

Supreme Court Asks Why Jio Shouldn’t Be Paying AGR Dues for Using Spectrum of RCom

AGR (Adjusted Gross Revenue) dues have become a major pain for the telecom industry of India. It has affected not...